Adani Group News: Thursday has brought two-sided happiness for Adani Group. On the one hand, despite the decline in the stock market, there has been a rise in the shares of Adani Group companies. Despite American allegations, governments from Abu Dhabi to Tanzania have expressed confidence in Gautam Adani’s companies.
Abu Dhabi’s International Holding Company (IHC) has reiterated its support to the Adani Group, saying that despite the indictment in the US against the group’s founding chairman Gautam Adani, its view on investment in the group has not changed. Meanwhile, the Sri Lanka Ports Authority and the Tanzanian government have also expressed full support to the Adani Group.
Abu Dhabi company expressed confidence
IHC, one of the major foreign investors in Adani Group, said in a statement, “Our partnership with Adani Group reflects our confidence in their contribution to the green energy and sustainability sectors. It is one of the largest government funds. As with all of our investments, our team continues to evaluate relevant information and developments, the statement said. At this time our view on these investments remains the same.
IHC has acquired the group’s renewable energy company Adani Green Energy Ltd in April 2022. (AGEL) and had invested about US $ 500 million in power company Adani Transmission. He had invested one billion dollars in the group’s flagship company Adani Enterprises.
However, later, it sold its 1.26 per cent stake in AGEN and 1.41 per cent stake in ATL (now called Adani Energy Solutions Ltd) but increased its stake in Adani Enterprises Ltd to five per cent.
Sri Lanka and Tanzania said this
Other international partners have also reiterated their support towards the Adani Group. Sri Lanka Ports Authority has expressed confidence in its partnership with Adani Group which has played a significant role in the expansion of their country’s port infrastructure. With an investment of $1 billion in the Colombo Terminal, the project will be the largest foreign direct investment in Sri Lanka’s port sector.
According to reports, Sri Lanka Ports Authority Chairman Admiral Sirimewan Ranasinghe (retd) said that there has been no discussion about canceling the project. This project will become operational in the next few months.
The Tanzanian government has also reaffirmed its commitment to its agreements with Adani Ports. It believes that there are no concerns regarding the existing projects and all contracts are fully compliant with Tanzanian law.
Tanzania and Adani Ports finalized a 30-year concession agreement to operate Container Terminal-2 at Dar es Salaam Port in May 2024.
Adani Group has given clarification
Earlier, Adani Group had said that industrialist Gautam Adani and his nephew Sagar Adani have not been charged with violating the US Foreign Corrupt Practices Act (FCPA) in the alleged bribery case. Rather, he has been charged with securities fraud, which can carry monetary penalties.
AGEL is accused of paying bribes worth US$265 million to Indian officials to win the solar power sales contract, which could have provided the company with a profit of US$2 billion over a 20-year period.
The company said the three AGEL executives have been charged only with conspiracy to commit securities fraud, conspiracy to commit wire fraud and securities fraud. Generally the penalties for such charges are less severe than for bribery.
Last week, Adani Group had rejected all the allegations and said that it will adopt all possible legal means to defend itself.